What is TAN? - PAN In India, a Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961.
Requirement - Any entity or individual that is required to deduct taxes at source while making specific payments such as salary, rent etc need to first obtain TAN number.
TDS/ TCS - The number is used in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates
Validity - A TAN is issued with lifetime validity and doesn’t need to be renewed.
Penalty - If an assessee fails to obtain or quote TAN will have to pay a penalty of Rs. 10,000/-
Issuance of TDS Certificates - TDS Certificates must be issued by individuals or entities deducting or collecting tax at source